Wall Street is jittery hours before the highly anticipated Federal Open Market Committee (FOMC) meeting, with all major indices posting modest losses by midday in New York. While a Federal Reserve rate cut is considered a done deal, the market remains divided on the magnitude of the cut.

Current implied probabilities show a 60% chance of a 50-basis-point reduction, while a smaller 25-basis-point cut has lately gained traction, rising to 40% odds, as per CME FedWatch.

The growing expectation of a smaller cut has pushed Treasury yields higher across the curve, reflecting a shift in market sentiment.

Amid this uncertainty, the CBOE Volatility Index (VIX), often seen as the market’s fear gauge, spiked 8%, signaling heightened investor anxiety.

The U.S. dollar steadied, recovering from overnight losses. Commodities retreated, with oil prices down 0.9%, despite a fresh escalation of tensions in the Middle East, and silver slipping 1%. Gold remained flat.

In the cryptocurrency market, Bitcoin BTC/USD declined 1.5%, dipping below the $60,000 mark after a 3.6% rally on Tuesday.

Wednesday’s Performance In Major U.S. Indices, ETFs

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY was 0.3% lower to $561.44.
• The SPDR Dow Jones Industrial Average DIA fell 0.3% to $416.11.
• The tech-heavy Invesco QQQ Trust Series QQQ fell 0.4% to $471.53.
• The iShares Russell 2000 ETF IWM eased 0.5% to $218.40.
• The Energy Select Sector SPDR Fund XLE outperformed, up 0.2%. The Technology Select Sector SPDR Fund XLK lagged, down 0.8%.

Wednesday’s Stock Movers

• ResMed Inc. RMD fell over 5% after Wolfe Research cut the stock rating from ‘Peer Perform’ to ‘Underperform.’
• General Motors Co.GM shares surged over 2% on Wednesday following the announcement that its electric vehicle customers will soon be able to access Tesla Inc. TSLA’s Supercharger network using a GM-approved adapter.

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Image created using artificial intelligence via Midjourney.